Software-Critical Provisions

Essential clauses for software subscription and licensing businesses

License Grant & Restrictions

Core Legal Framework

Define the scope of license: personal/commercial use, number of installations, and prohibited uses (reverse engineering, sublicensing, resale).

Seat/User Management

Pricing Model Clarity

Specify per-seat pricing, how seats are counted (named users vs concurrent), and policies for adding/removing seats mid-term.

Data Portability & Export

Customer Lock-in Prevention

Provide data export capabilities, specify formats available, and define data retention period after subscription ends.

SLA & Uptime Guarantee

Service Level Commitment

Define uptime commitment (99.9% typical), scheduled maintenance windows, and service credits for downtime exceeding SLA.

Feature Deprecation Policy

Change Management

Reserve right to modify, deprecate, or remove features. Specify notice period for material changes and migration assistance.

API Usage & Rate Limits

Integration Terms

If providing APIs, specify rate limits, acceptable use, and restrictions on building competing products using your API.

Standard Legal Provisions

Essential clauses required in all Terms of Service

Agreement to Terms
Auto-Renewal Terms
Limitation of Liability
Dispute Resolution
Governing Law
Intellectual Property
Indemnification
Data Processing

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SaaS Terms

Cloud software compliance

Subscription Terms

Auto-renewal compliance

Media Subscriptions

Streaming content licensing

Healthcare SaaS

HIPAA compliance

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